Stock markets in Asia bounced back this morning on news of the 100billion euro banking bailout for Spain, but critics have warned the recovering value of the single currency is merely a blip amid the growing risk of Italy following suit.

Other major markets including Singapore, China, Indonesia and New Zealand also showed positive changes.

Protesters in Madrid bang pots to show their displeasure at the bailout for the national banking system (Picture: Getty)

However, some critics have cautioned against wild optimism for the future of the European financial situation – describing the Spanish bailout as having the potential to be merely the tip of the iceberg.

The Italian economy looks to be next in the cross-hairs, with stagnating growth and high unemployment forcing government debt to continue increasing.

And after bailouts for Ireland, Portugal, Greece and now Spain, several market analysts have suggested more problems may lie ahead despite the short-term improvement in fortunes.

‘I think it’s only a brief respite for the markets,’ said Tom Kaan of Louis Capital Markets in Hong Kong.

‘The 100billion bailout is hopefully setting up a firewall against a much worse deterioration.

‘Here we are, saving the banks. But what is next?’

Greece’s next election is set to be held this Sunday, when a clearer direction of their government policies will come into focus.